Lagos State Governor, Babajide Sanwo-Olu, has dismissed claims that Lagos will be the primary beneficiary of the proposed tax reform bills.
During an interview on Channels Television on Monday, Borno State Governor, Babagana Zulum, asserted that the proposed Value-Added Tax (VAT) sharing model in the tax reform bills would disproportionately favour Lagos State.
However, speaking with the News Agency of Nigeria on the sidelines of the Africa Investment Forum Market in Morocco on Wednesday, Sanwo-Olu countered this assertion.
He emphasized that the reforms would require collective effort and hard work to achieve their intended benefits.
The governor urged Nigerians to carefully study the provisions of the reform bills, reiterating that Lagos would not be the sole or primary beneficiary of the proposed changes.
The governor said, “What those uncomfortable with the tax reform are not willing to accept is that there is no way of making an omelette without breaking the egg.
“You cannot make changes if the reforms are not set in. I have advised that people should take time to read the provisions of the reform very well and to fully understand what they’re trying to do.
“I have seen comments around. Comments like Lagos is going to be the major beneficiary. It is not true.
“Lagos is actually going to be shaped-off in some places, but on a larger scale basis, we see it as a global thing for a better governance structure.
“All of us will play better, and we’ll be able to discipline ourselves more. One of the things you will see is that you need to work harder to get the full benefit of the reform. So it’s not just an easy kill.”
Sanwo-Olu emphasized the urgent need for tax reforms, citing Nigeria’s low tax-to-GDP ratio, which ranks among the lowest in the world.
He expressed confidence that the proposed reforms would create substantial opportunities for states and non-governmental stakeholders alike, fostering economic growth and development.
“I have a positive attitude to it. I see it as a very wonderful reform. The tax-to-GDP ratio in Nigeria is one of the lowest in the world.
“So, there are a few things that need to happen, and like I keep saying, not only when you make those changes, you will not be able to see the opportunities that are found in your account.
“We really need to be bullish. We need to be encouraging ourselves and know that the intention is not to hurt anybody. This, I am very sure of.
“The intention is to better a lot, but not just better a lot of one person or one set of people. It’s for all of us, and so we should look at it this way,” the governor added.
Recall that President Bola Tinubu on October 3 asked the National Assembly to consider and pass four tax reform bills, which includes the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service Establishment Bill and the Joint Revenue Board Establishment Bill.
Sanwo-Olu Refutes Claims Lagos Will Benefit Most From Tax Reform Bills is first published on The Whistler Newspaper
